Singapore GDP Unexpectedly Expands as Outlook Improves
Singapore’s economy unexpectedly expanded last quarter as manufacturing declined less than initially estimated amid recoveries in advanced countries.
Gross domestic product rose an annualized 0.1% in the three months through June from the previous quarter, when it climbed a revised 1.8%, the trade ministry said in a statement today.
The export-dependent Southeast Asian nation is set to benefit from a recovery in global growth, which is helping to offset higher business costs as the government pursues a plan to slow the inflow of foreign workers, boost productivity and attract new industries.
The economy expanded 2.4 % in the second quarter from a year earlier, after growing a revised 4.8 % in the previous three months, the trade ministry said today.
Manufacturing declined 15.2 % in the second quarter from the previous three months, compared with a July estimate of a 19.4 % contraction. Services rose 4.5 % in the same period, while construction gained 0.3 %.
The central bank’s policy stance remains appropriate and unchanged, said Jacqueline Loh, deputy managing director at the Monetary Authority of Singapore.
While domestically-oriented sectors such as business services and information and communications are expected to remain resilient in the second half of the year, growth in some labor-intensive segments such as retail and food services may be weighed down by labor constraints, the trade ministry said.
Source: Bloomberg
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